RL-1 slip - Box O, code RJ with a T4 slip boxes 66 and/or 67You received an RL-1 slip with an amount in Box O and an RJ code following a dismissal or retirement.
You also received a T4 slip with an amount entered in boxes 66 and/or 67 for the same reason.
In order to account for this situation, please follow these steps:
1 - On the "Left side menu on the Interview tab", select "T4 and employment income".
2 - On the right-hand side of the screen, select one of the first two options, "T4 and RL-1 income earned in Quebec" or "T4 income (earned in any province except Quebec)" as per your situation, and enter the information found on your T4 slip in the appropriate boxes.
3 - At the center of the page, you will find the fields to complete for boxes 66 and 67. For "Box 66 - eligible retiring allowances (RL-1 Box O (RJ))", enter in the field on your right the amount shown in Box 66 of your T4 slip.
4 - If an amount was transferred directly to an RRSP/PRPP, enter the amount transferred to an RRSP/PRPP in the field "Portion of Box 66 transferred to a RRSP/PRPP".
5 - However, if this amount was transferred to the first 60 day of 2019, also enter the amount in the section entitled "Portion of Box 66 transferred to an RRSP/PRPP (From the unused RRSP/PRPP contributions of January and February 2019)".
6 - If an amount is transferred directly to an RPP line "Portion of the box 66 transferred to an RPP".
7 - However, if no portion of the amount in Box 66 was transferred to an RRSP or RPP, either by you or by your employer, leave these two lines blank.
8 - On line "Box 67 - Non-eligible retiring allowances (RL-1 box O (RJ)", enter the amount shown in Box 67 of your T4 slip.
Note for Quebec residents: If no amount appears in box 66 or 67 of the T4 slip, enter $0.00 and click on the "Maple Leaf" icon to the right of the line to generate a field and record the amount in Box O of the RL-1.
The amount from boxes 66 and 67 will be reported by the program on line 13000 of the federal return and line 154 of the Quebec return, and code 03 will be entered on Quebec line 153.
The amount transferred directly to an RRSP account will be carried over by the program to line 24640 of Schedule 7 and shall not affect the "RRSP deduction limit".
If applicable, the "RPP deduction schedule" for RPP will be generated by the program and the amount transferred directly to your RPP will be entered on line 22 for it not to be subject to the "Annual deduction limit".
For more information, please visit the link of the CRA:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-130-other-income/line-130-retiring-allowance-severance-pay.html
For residents of Quebec, please consult the following Revenu Quebec links:
https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/96-to-164-total-income/line-154/point-3/
https://www.revenuquebec.ca/en/businesses/source-deductions-contributions/filing-rl-slips-and-the-rl-1-summary/rl-1-slip-employment-and-other-income/how-to-complete-the-rl-1-slip/box-o/retiring-allowance-code-rj/
ID: 20191007090012DE.xml
Webpage: KPA365-20191007090012DE.htm